Finding Text
Criteria: 2 CFR 200.318(i) establishes the need to maintain records sufficient to detail the history of procurement. 2 CFR 180.300 establishes the responsibilities of participants entering into covered transactions. Condition and Context: We noted one new procured vendor in the current year, which was selected for testing, totaling $29,205 for printing and copying services. We noted the entity lacked sufficient documentation to support the rationale of the procurement method, selection of contract type, contractor selection or rejection, and basis for the contract price. We also noted suspension and debarments requirements were not given consideration prior to entering into these transactions. However, we noted there were adequate invoices to support the purchases. Known Questioned Costs: $29,205 Cause and Effect: As described in item 2022-001, the Organization has not established formal written policies related to procurement and does not have a system in place to adequately document all compliance decisions made during the administration of the program. As a result, the Organization did not comply with the requirement for proper procurement and suspension and debarment. Recommendation: We recommend the Organization develop a system of internal controls aligned with the applicable compliance requirements to sufficiently document procurements and to ensure suspension and debarment is considered prior to entering into future covered transactions. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation and has implemented their corrective actions as of the date the financial statements were available for issuance